In other moves, Justine Greening has been moved from the transport brief to become international development secretary. Her replacement by Patrick McLoughlin will raise speculation about a Government U-turn to back a third runway at Heathrow, something Miss Greening has opposed.

Owen Paterson moves from Northern Ireland to the environment department. A strong supporter of hunting and other country sports, his appointment will raise campaigners' hopes of an early Commons vote on ending the ban on foxhunting. His replacement is Theresa Villiers, previously Miss Greening's deputy at transport.

Mr Lansley, who had held the health post since May 2010, will become Leader of the House, a post vacated by Sir George Young.

The change at the Department of Health follows sustained attacks on the Coalition’s health reforms, which give GPs control of more than £80 billion of commissioning budgets.

Mr Lansley has spoken for the Conservatives on health since 2005, and his removal from the post was among the most significant moves of Mr Cameron’s shuffle.

No 10 aides said the move was intended to allow the Government to focus on “delivery”. Mr Hunt is seen to have been a success helping co-ordinate the Olympics, and is seen as a more effective communicator than Mr Lansley.

However, his promotion to the health department – where he will oversee a budget of more than £100 billion – will renew attacks on Mr Cameron over Conservatives’ close links with News Corp and Mr Murdoch’s team.